US President Donald Trump has implemented a slew of wide-ranging tariffs that will not only bump up the cost of almost all imported items, but that may also make it difficult to source certain items that become too expensive to manufacture domestically.

We’re taking a look at how these tariffs look set to impact motorsport in America, from NASCAR to Formula 1.

Explained: What are Donald Trump’s latest tariffs?

Last week, US President Donald Trump announced a set of wide-ranging tariffs set to be implemented on imported products from around the world.

Trump has levied a base-level 10% tariff on all countries, with tariffs ranging far higher for nations believed to be in a “trade deficit” with the United States.

In effect, tariffs represent a percentage of a product’s value, and those values are tacked onto the price that a consumer pays for that product. A 50% tariff on a $10 item, for example, would bump the price of that product up to $15. As such, the increased costs will be passed on to the American buyer.

It’s worth noting that this situation has been continually evolving since Trump took office in January, and that there are also concerns that these tariffs will not be legal without Congressional approval. But many are operating under the assumption that they’ll be paying a pretty penny for any goods imported from foreign countries.

Because the motorsport world is a global industry, we’re going to look at the impact these tariffs could have on American racing.

How Donald Trump’s tariffs could impact NASCAR

While NASCAR enjoys a certain level of insulation from tariffs thanks to its regionality, its teams are looking at increased costs when it comes time to purchase goods.

In 2022, NASCAR introduced the Next-Gen car to the Cup Series. This machine is composed of mandatory single-sourced parts — meaning, all teams are expected to purchase and use certain components provided by a single manufacturer.

The series provided the full list of single-source vendors back in 2021. Many are American — but many are not.

Imported parts on NASCAR machines include:

  • Radiator ducts (from Dallara in Italy)
  • Brake systems (from AP Racing Limited in the United Kingdom)
  • Bumpers (from Kirkey Racing Fabrication in the United Kingdom)
  • Propshafts (from Lentus Composites Limited in the United Kingdom)
  • Digital dash and ECU (from McLaren in the United Kingdom)

Other components are sourced from American arms of foreign companies, including:

  • Wheels (from BBS of America; the parent company is from Germany)
  • Dampers (from Ohlins USA; the parent company is in Sweden)
  • Clutch shaft, driveshaft, transaxle (from Xtrac Inc; the parent company is in the United Kingdom)

Further, Toyota — one of the Cup Series’ three manufacturers — is based in Japan.

PlanetF1.com understands that some Cup Series teams feel they’ll be able to absorb increased import costs, but there are concerns about how the lower tier stock car series will cope, as teams in the Truck Series and ARCA are often small operations run on shoestring budgets that cannot absorb extra costs.

More on American automakers in Formula 1:

👉 Why have US giants Ford returned to F1 and partnered with Red Bull?

👉 Cadillac F1: Everything you need to know about the new 11th team

How Donald Trump’s tariffs could impact IndyCar

Though IndyCar is also primarily based in the United States, the sport imports plenty of foreign-made goods, which have been detailed by RACER.

Those imported goods include:

  • The DW12 Dallara chassis, which comes from Italy.
  • O.Z. and BBS, two wheel providers, are based in Italy and Germany.
  • The motor generator unit for IndyCar’s hybrid comes from Empel, based in the Netherlands.
  • Austrian company Pankl fabricates the titanium halo used on the aeroscreen.
  • Dampers from Canada
  • Exhausts from the United Kingdom
  • Seat belts from various international suppliers
  • And many more

A representative from Penske Entertainment, which owns IndyCar, told PlanetF1.com that the series is aware of these tariffs and will be monitoring them; however, the situation is too fluid to draw any significant conclusions.

IndyCar standardizes many of its car components; many teams have stockpiled parts and spares for 2025, and many will likely purchase additional components before the full force of the tariffs come into play. Further, RACER notes that buying cycles run from October to February, so there isn’t time to panic just yet.

However, team owner Mike Shank has provided a clear-eyed look at the situation:

“In general, we’ve had a huge drop in the Dow and all of our companies that are doing things with us are listed companies,” he told RACER.

“The uneasiness is not helpful right now; tariffs, obviously, are part of that uneasiness.

“My personal belief is we’ll get through this and we’ll move on, but it is not awesome, right? And yeah, we have to have planning for what if A, B, or C happens in regards to cash flow and how we’re going to get through this.

“Everybody’s going to be dealing with the same thing. Because it doesn’t matter whoever you are, if it’s a company or even from the auto manufacturer’s standpoint, they’re all going to call at some point and say, ‘Hey, what can we do to tighten this up?’”

Shank also noted that “a lot of teams have credit lines that are going to get flexed at some point” during this period.

And that’s not even taking into consideration Honda, one of IndyCar’s two engine providers. The Japanese automaker has been toying with the idea of leaving IndyCar for several years, citing cost concerns as far back as 2023. Increased costs from tariffs are likely to exacerbate those concerns.

“Across all of our business operations, Honda has been monitoring the tariff situation,” a Honda representative told PlanetF1.com.

“However, the exact impact of the tariffs on Honda’s motorsports activities globally is still not fully known.”

How Donald Trump’s tariffs could impact Formula 1

And that brings us to Formula 1. Thanks to its more international nature, F1 can likely avoid the worst of the ongoing tariff concerns, but there are three specific parties that may be impacted more than most: Cadillac, Ford, and Haas.

Cadillac declined to comment on questions from PlanetF1.com, instead pointing to a statement from American Automotive Policy Council President Matt Blunt that reads, “U.S. Automakers are committed to President Trump’s vision of increasing automotive production and jobs in the U.S. and will continue to work with the Administration on durable policies that help Americans.

“In particular, it is critical that tariffs are implemented in a way that avoids raising prices for consumers and that preserves the competitiveness of the integrated North American automotive sector that has been a key success of the President’s USMCA agreement.”

That statement fails to touch on any specifics, which is understandable; at the moment, many automakers are hesitant to take any clear, actionable stance until additional tariff details are revealed.

However, we can pinpoint some particular areas of concern for these F1-affiliated automakers and teams going forward.

Cadillac F1 will have three bases in the United States and one in the United Kingdom. The team will be headquartered in Indiana, where it intends to conduct the bulk of its car manufacturing; its power unit facility will be located in North Carolina; and its Michigan base will offer additional operational support.

Though it isn’t clear where Cadillac will source its power unit and chassis materials, supplies, and components from in the future, construction in America will necessitate the importation of tariffed goods at some point in the process.

It is likely to be a similar situation with Ford; the American automaker will be helping constructing power units for Red Bull Racing and Racing Bulls. That construction is set to take place primarily in the United Kingdom, but any transfer of goods across borders will likely come with an associated tariff.

And, finally, we have Haas, which has a base in North Carolina. That base, though, seems largely concerned with developmental work, while construction of the car and its regular operations are done in Banbury, England.

The biggest concern on Haas’ side is likely to come from its primary business as a CNC machine manufacturer and not necessarily the F1 team itself.

If foreign countries enact retaliatory tariffs against the United States, Haas CNC machines will skyrocket in price.

With this a rapidly developing situation, only thing we can say with certainty is that American motorsport will definitely be feeling the effects of these tariffs in some way.